From the Sector

Order Intake Continued to Recover in the Fourth Quarter of 2020:

• Order intake increased to CHF 215.1 million in the fourth quarter of 2020 and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales expected
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee

Rieter posted a globally and broadly supported order intake of CHF 215.1 million in the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020 after the slump in demand in the second quarter continued (order intake second quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds to a decrease of 31% compared to the previous year.

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

As expected, as a consequence of the economic effects of the COVID-19 pandemic, the Rieter Group closed the 2020 financial year with considerably lower sales than in the previous year. According to the first, as yet unaudited figures, total sales of CHF 573.0 million were achieved, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million).

Order Intake by Business Group
All three business groups were affected by the slump in demand in the second quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order intake in the third and fourth quarters of 2020, the weak second quarter was only partially offset.

The Business Group Machines & Systems was particularly hard hit by the effects of the pandemic, with a year-on-year decline of 35%. The Business Groups Components and After Sales each recorded a 24% reduction in order intake.*

Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in all three business groups. Accordingly, reluctance to invest and deferred deliveries by customers caused sales in the Business Group Machines & Systems to decline by 24% compared to the previous year.

Due to COVID-19, a large number of spinning mills stopped production worldwide. This led to low demand for spare parts and wear parts, especially in the second and third quarters of 2020. Accordingly, compared to the previous year, sales in the Business Groups Components and After Sales fell by 24% and 27% respectively in the 2020 financial year.*

Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a consequence of the COVID-19 pandemic.*

EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019: 11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31, 2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in the mid three-digit million range.

First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the first half of 2021 to be below the break-even point.*

Change to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding Ltd. has appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.*

Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur on April 15, 2021.*

*See attached document for more information.

From the drinking water and food industries through water management and mining to the automotive and aviation sectors, mechanical filtration processes are used in almost every industry. As different as the methods, dimensions and special requirements of the filtration process are in each case – technical textiles and often tubular filters are almost always used. This means that tubular filters and narrow textiles by vombaur contribute to the safe and reliable separation or treatment of substances in the widest variety of filtration processes.

Individual solutions
The requirements placed on the textile, the material, the flow rate and the loading capacity of the filters depend on the respective use: a tubular for dewatering soil needs to withstand different forces than a tubular filter for the beverages industry. On the other hand, the latter needs to meet the highest hygiene standards. Because the requirements are so individual, vombaur develops customised filtration textiles for its customers all over the world.

Seamless tubular filters
At vombaur, filter media are round woven seamlessly on unique looms. As a result, they have identical surface properties all around and over the entire length, such as flow rate, loading capacity, shrinkage behaviour or material thickness

Narrow textiles for fabricating filter media
"We manufacture our narrow textiles from a wide variety of high-tech yarns. Sometimes monofilament yarn is used, sometimes multifilament, sometimes spun yarn. Like the type of weave, we select the raw materials depending on the function they need to fulfil," emphasises Gert Laarakker, Sales Manager at vombaur. "So that our filtration textiles reliably perform the job they are supposed to perform. Clean. Safe. Sturdy."

International technology Group ANDRITZ has received an order to supply a neXline spunlace eXcelle line to Minet S.A, based in Ramnicu Valcéa, Romania, for processing various fibers from 25 to 70 gsm to produce a wide range of hygiene products. Start-up is expected during the second quarter of 2022.

ANDRITZ will deliver a complete line, from web forming to drying. The line will integrate one high-speed TT card, the robust Jetlace Essentiel hydroentanglement unit equipped with a neXecodry S1 system for energy saving, and a neXdry double-drum through-air dryer.

The close collaboration between ANDRITZ and Minet in needlepunch was an important consideration in the choice of supplier for the spunlace line as well as the fact that ANDRITZ is recognized as the benchmark for production of premium spunlace roll goods.

Just recently, ANDRITZ successfully completed the commissioning of a neXline needlepunch eXcelle line for Minet. This line is dedicated to the production of automotive products made from a large variety of fibers. For this contract, ANDRITZ delivered a complete line from fiber preparation to end-of-line, also integrating card, crosslapper, batt drafter, two needlelooms and a Zeta felt drafter with a working width of more than 6 m. The line is also equipped with the unique ProDyn web profiling system, operating as a closed-loop control system in order to ensure perfect evenness of the products.

Hologenix, creators of Celliant®, infrared responsive technology, and Kelheim Fibres, a world-leading manufacturer of viscose specialty fibers, have partnered to launch Celliant Viscose at ISPO Munich 2021. Celliant Viscose is a finalist in Best Products by ISPO and will be showcased in the Fibers & Insulations Category for ISPO Textrends, where realistic views and 3-D simulations will be available for each material.

The introduction of nature-based Celliant Viscose will be the first in-fiber infrared sustainable solution on the market and meets a consumer demand for more environmentally friendly textiles. An alternative to synthetic fibers and extremely versatile, Celliant Viscose blends beautifully with cotton, micromodal, lyocell, wool varieties including cashmere. It also has many applications across industries as it is ideal for performance wear, luxury loungewear, casual wear and bedding.

Celliant Viscose features natural, ethically sourced minerals embedded into plant-based fibers to create infrared products that capture and convert body heat into infrared, increasing local circulation and improved cellular oxygenation. This results in stronger performance, faster recovery and better sleep.

Celliant Viscose provides all the benefits of being a viscose fiber — lightweight, soft, highly breathable, excellent moisture management — as well as fiber enhancements from Celliant infrared technology. Celliant’s proprietary blend of natural minerals allows textiles to capture and convert body heat into full-spectrum infrared energy, resulting in stronger performance, faster recovery and better sleep. In addition, Celliant is durable and will not wash out, lasting the useful life of the product it powers.

An Affordable, Long-lasting Solution with Diverse Applications
As opposed to other IR viscose products which are coatings based, Celliant Viscose’s in-fiber solution increases wearability and longevity with a soft feel, durability from washing and longer life. The combination of Kelheim’s distinctive technology and the Celliant additives creates this unique fiber that provides full functionality without the need for any additional processing step — a new standard in the field of sustainable IR viscose fibers. This single processing also makes Celliant Viscose more cost-effective and time-efficient than coatings.

In addition, Kelheim’s flexible technology allows targeted interventions in the viscose fiber process. By modifying the fiber’s dimensions or cross sections or by incorporating additives into the fiber matrix, Kelheim can precisely define the fiber’s properties according to the specific needs of the end product.

Highly Sustainable
Celliant Viscose is a plant and mineral-based solution for brands seeking an alternative to synthetic fibers. It contains natural raw materials that are from the earth and can return safely to the earth.

Nature-based Celliant Viscose is certified by FSC® or PEFC™, which guarantees the origin in sustainably managed plantations, and is part of the CanopyStyle initiative to protect ancient and endangered forests. The production of Celliant Viscose takes place exclusively at the Kelheim facilities in Germany, complying with the country’s strict environmental laws and guaranteeing an overall eco-friendly product.

Backed by Science
Celliant is rigorously tested by a Science Advisory Board composed of experts in the fields of physics, biology, chemistry and medicine. The Science Advisory Board has overseen 10 clinical, technical and physical trials, and seven published studies that demonstrate Celliant’s effectiveness and the benefits of infrared energy.

For more information, visit www.celliant.com/celliant-viscose/

• Lenzing is the only first-time discloser recognized with prestigious double ‘A’ score for global climate and forests stewardship by CDP.

Lenzing – The Lenzing Group has been recognized by the global environmental non-profit CDP, securing a place on its prestigious ‘A List’ for tackling climate change, as well as acting to protect forests. Through significant demonstrable action in these areas, Lenzing is leading on corporate environmental ambition, action and transparency worldwide.

Please read the attached document for more information.

• Looking to the future – Frankfurt Fashion Week is positioning itself with a consistently sustainable agenda and propelling the transformation of a modern, resource-efficient fashion industry.

The Conscious Fashion Campaign (CFC), working in collaboration with the United Nations Office for Partnerships (UNOP), will be the presenting partner and the Sustainable Development Goals (SDGs) will be a prerequisite for all exhibitors by 2023. And the Frankfurt Fashion SDG Summit by CFC is set to become the leading international conference for sustainability in the fashion world. The future of fashion has begun – and its key players will be coming together in Frankfurt am Main from 5-9 July 2021.
 
Frankfurt am Main, 2 December 2020. Joining forces to improve the fashion industry: Frankfurt Fashion Week is positioning itself as the host of the future of fashion and actively driving forward the transformation towards a future-oriented, more sustainable fashion and textile industry. All decision-makers looking to instigate this change will be coming together in Frankfurt am Main from 5-9 July 2021. The initiators of Frankfurt Fashion Week – Messe Frankfurt and the Premium Group – have achieved a real coup: Conscious Fashion Campaign, working in collaboration with the United Nations Office for Partnerships, will be the presenting partner. Messe Frankfurt will build on its collaboration with the United Nations Office for Partnerships and establish Frankfurt Fashion week as the platform on which to advance the Sustainable Development Goals and help guide the fashion industry into the 'Decade of Action'.
 
“Frankfurt will play host to the whole world. We are seeing a very positive response indeed,” confirmed Peter Feldmann, Senior Mayor of the City of Frankfurt am Main, at today’s digital press conference, before going on to say: “The fact that the initiators are able to rethink the concept of a Fashion Week in such a way is extremely impressive and proves that the fashion industry is correctly interpreting the signs of the present and future. The time has come for value creation and values to be reconciled. Consistent alignment with the Sustainable Development Goals is an important step in this direction.”
 
“Frankfurt Fashion Week aims to play a crucial role in finding solutions for macrosocial challenges and supporting the goals of international politics such as the European Green Deal. The fashion and textile industries are also expected to be climate-neutral by 2050. If we want to achieve this, we all need to pull together. Frankfurt Fashion Week is inviting all initiators and supporters of sustainable concepts and congresses or shows dedicated to sustainability to meet in Frankfurt, partake in discussions and make tangible decisions for the greater good. We will connect the most relevant players and pave the way for a future-proof fashion and textile industry,” says Detlef Braun, CEO of Messe Frankfurt.
 
“Given its global reach, the fashion industry is uniquely positioned to collaborate and engage on the Sustainable Development Goals, in particular on climate action and responsible production and consumption,” said Annemarie Hou, Acting Executive Director of the United Nations Office for Partnerships. “Frankfurt Fashion Week and the Summit will serve as an important platform for education and engagement of the fashion and textile industry in the Decade of Action,” emphasised Ms Hou.
 
The aim of Frankfurt Fashion Week is for all exhibitors, participants and partners to align with the Sustainable Development Goals by 2023. The SDGs will also be incorporated into all formats of Frankfurt Fashion Week. This will help to make the UN’s sustainability goals visible and tangible for the Fashion Week audience, therefore bringing its claim, goals and specific proposals for implementation to an international opinion-forming fashion and lifestyle community. During a one-day Frankfurt Fashion SDG Summit presented by Conscious Fashion Campaign, topics like gender equality, clean water, climate protection, social justice and their significance for a forward-looking fashion industry will be examined in greater depth. Another point on the sustainability agenda: Frankfurt Fashion Week is launching a Sustainability Award for outstanding, innovative, sustainable design, alongside other categories with a global appeal for the fashion and textile industry.
 
"We are committed to setting the wheels of transformation in motion. Not only does the overall mindset have to fundamentally change; the entire industry also needs to have the courage to be transparent and honest. It’s important to see values and value creation as opportunities rather than contentious. We are doing what we do best: connecting the relevant players at all levels. With its ecosystem, Frankfurt Fashion Week will become the enabler. We are creating a platform that will orchestrate industry-wide change. With this as our inspiration, we are also developing our tradeshow formats from a ‘marketplace of products’ to a ‘marketplace of purpose and ideas’,” explains Anita Tillmann, Managing Partner of the Premium Group.
 
A new start in Frankfurt: In summer 2021 the entire fashion industry will be coming to the metropolis on the Main river to inform themselves, be inspired, discuss, negotiate and celebrate. “There’s a huge need to finally meet in person again, to exchange ideas and be inspired. At the same time, digital tools and formats have become an integral part of the fashion industry,” says Markus Frank, Head of the City of Frankfurt’s Department of Economic Affairs and therefore also responsible for its creative industry. “To implement such a future-oriented, all-encompassing overall concept, Frankfurt’s business and creative scenes offer an almost unique concentration of different expertise with its internationally networked agencies, universities and museums. The city’s multifaceted, high-end club, bar and restaurant scene, diverse hotel industry and internationally renowned retail landscape will become the stage for this. This network will be a key factor in the successful implementation of Frankfurt Fashion Week and the way in which it will expand into the public space as a cultural and social happening.”
 
A number of major publishing houses are also showing their commitment to the new Fashion Week in Frankfurt with conferences, events and awards: Textilwirtschaft, the leading professional fashion journal by the Deutscher Fachverlag publishing house, is moving its traditional meeting of the industry’s top decision-makers – the TW Forum, the presentation of the renowned Forum Award, as well as its subsequent conference – from Heidelberg to Frankfurt’s Palmengarten botanical gardens, and will therefore be kicking off Frankfurt Fashion Week on Sunday evening and Monday morning. The Frankfurter Allgemeine Zeitung will be hosting its traditional fashion party for the first time in Frankfurt and publishing a special edition of its FAZ Magazin on Frankfurt Fashion Week. And the ZEIT publishing group is holding its ‘UNLOCK Style by ZEITmagazin’ conference, which was established in 2014, and the ZEITmagazin Fashion Week party in Frankfurt for the first time and will dedicate the whole new issue of ZEITmagazin Frankfurt to Frankfurt Fashion Week. Condé Nast will also be involved in next summer’s Frankfurt Fashion Week with an exclusive event by GQ. And the Burda publishing house will also be represented with various event formats from its lifestyle and fashion brands.There will also be talks with SHINE  Conventions, the organiser of GLOW, about what a mutual collaboration could look like.
 
Frankfurt Fashion Week is also delighted to have the Fashion Council Germany (FCG) on board.  The FCG is theinstitution when it comes to German fashion design. It promotes designers, is committed to gaining more political relevance and strengthens the international visibility and awareness of German fashion. At Frankfurt Fashion Week, the FCG will contribute selected formats, such as its already established Fireside Chat, and a future-oriented accelerator format to support German designers.
 
“What really impresses me about Fashion Week is the whole networking aspect: the creative industries will meet the financial world and sustainability is the common denominator. The Green Finance Cluster is another project that we could link with Frankfurt Fashion Week in the future. This will provide new inspiration in the fashion industry, which will certainly extend way beyond its own horizon of Frankfurt and Hesse. After a very difficult year for the trade fair industry, the concept is an encouraging breath of fresh air,” sums up Tarek Al-Wazir, Hesse’s Minister of Economics, Energy, Transport and Regional Development and Deputy Minister-President of the state of Hessen.

• Monforts customer Kipaş has been selected as the sole denim manufacturing partner in the €6.7 million European Union-funded New Cotton Project, involving the brands adidas and H&M, working in a consortium with suppliers, innovators and research institutes.

Kipaş, based in Kahramanmaraş, Turkey, is currently installing its third Monforts Montex stenter along with a third Monfortex compressive shrinkage system in a combined configuration dedicated to denim production.

This follows the successful installation and commissioning of the second Montex and Monfortex lines at the Kahramanmaraş plant in 2018, which Kipaş Vice Chairman of the Board Ahmet Öksüz said had immediately exceeded expectations.

“We performed a very thorough technical investigation based on the latest Industry 4.0 analysis before the purchase, to determine what we needed, and the Monforts technology met all our requirements,” he said, in an interview with Textilegence magazine. “The Monfortex is equipped with a variety of features not found on classical shrinkage machines and the production can be monitored from beginning to end. It also exceeded our expectations in energy cost savings.”

Kipaş subsequently received a special certificate from Monforts in recognition of its exceptional utilisation of the technology to its full potential.

The latest Montex stenter now being installed at Kipaş is a 12-chamber unit with a working width of 2 metres featuring all of the latest automation features. The Monfortex unit, also with a working width of 2 metres, is in a ‘double rubber’ configuration, comprising two compressive shrinkage units and two felt calenders in line. This allows the heat setting of elastane fibres and the residual shrinkage of the denim to be carried out simultaneously, for a significant increase in production speeds.

“Around 90-95% of denim fabric production now contains elastane fibres and the Monforts system has allowed us to simultaneously increase our production and quality in this respect,” Mr Öksüz said.

Regenerated cotton
For the next three years within the New Cotton Project, Kipaş will manufacture denim fabrics based on the cellulose-based fibres of Infinited Fiber Company of Finland, made from post-consumer textile waste that has been collected, sorted and regenerated.

The patented technology of Infinited, which is leading the consortium of 12 companies, turns cellulose-rich textile waste into fibres that look and feel like cotton.

“We are very excited and proud to lead this project which is breaking new ground when it comes to making circularity in the textile industry a reality,” said Infinited co-founder and CEO Petri Alava. “The enthusiasm and commitment with which the entire consortium has come together to work towards a cleaner, more sustainable future for fashion is truly inspiring.”

Take-back programmes
Adidas and H&M will establish take-back programmes to collect the clothing that is produced, to determine the next phase in their lifecycle. Clothing that can no longer be worn will be returned to Infinited, for regeneration into new fibres, further contributing to a circular economy in which textiles never go to waste, but instead are reused, recycled or turned into new garments.

The aim is to prove that circular, sustainable fashion can be achieved today, and to act as an inspiration and stepping stone to further, even bigger circular initiatives by the industry going forward.

The EU has identified the high potential for circularity within the textile industry, while simultaneously highlighting the urgent need for the development of technologies to produce and design sustainable and circular bio-based materials. Making sustainable products commonplace, reducing waste and leading global efforts on circularity are outlined in the European Commission’s Circular Economy Action Plan.

Fashion brands produce nearly twice as many clothes today as they did 20 years ago and demand is expected to continue growing. At the same time, the equivalent of one garbage truck of textiles is landfilled or burned every second. Most of the textile industry’s environmental problems relate to the raw materials used by the industry – cotton, fossil-based fibres such as polyester, and viscose as the most common man-made cellulosic fibre, are all associated with serious environmental concerns.

The Bavarian viscose speciality fibres manufacturer Kelheim Fibres has partnered with the European Technology Platform for the Future of Textiles and Clothing (ETP) in two strategic programs: “Bio- Based Fibres” and “Circular Economy”.

Against the backdrop of the increasingly important sustainability debate, fundamental changes inside the textile supply chain are taking place. The two three-year ETP programmes “Bio-Based Fibres” and “Circular Economy” are a clear response to this. The goal is to bring key players from industry and science together to develop a long-term strategy to actively shape the sustainable realignment of the European textile industry.

“We have been manufacturing bio-based fibres for almost 85 years – these fibres are made from the renewable material wood and they are fully biodegradable at the end of their product lifecycle. As an alternative to crude-oil based materials, these fibres are becoming increasingly popular in various applications. Part of the reason for this is the fact that we can functionalize our speciality fibres during the production process and give them the exact properties that are required for different end uses. In terms of performance, they can keep up with synthetic materials”, explains Dr. Marina Crnoja-Cosic, head of New Business Development at Kelheim Fibres.

But Kelheim’s sustainability criteria also include the full life cycle of their products: When a textile, after its use, can become the raw material for new fibres and new products, for Crnoja-Cosic that is a huge advantage in terms of sustainability. “We want the best possible result – bio-based fibres AND circular economy are the way to get there.”

• Carbon fibers combined with injection molding replace conventional steel construction
• SGL Carbon supplies innovative carbon fiber profiles
• Serial use in a future high-volume model of BMW Group
• Construction method offers great potential for use in other automotive projects

Already in August, SGL Carbon received a multi-year order from Koller Kunststofftechnik GmbH for the production of novel carbon fiber profiles for serial use in windshields for a future high-volume model of BMW Group.

The profiles are particularly flexible fiber tows, pre-impregnated with thermoplastic resin in various dimensions. They will be compiled by SGL Carbon on the basis of its own 50k carbon fiber at its site in Innkreis, Austria, and subsequently processed by the injection molding experts at Koller to form a skeletal plastic component. The composite component will replace the previous steel-based windshield. Production of the carbon fiber profiles will start in the remainder of 2020 and will then be ramped up gradually over the next few years for the BMW Group model launch.

In the vehicle, the windshield is a connecting element between the roof frames and thus has an important stabilizing function. The carbon fiber profiles add the required stiffness and crash safety to the component. At the same time, they help to significantly reduce the weight of the roof and thus also support the driving dynamics. The injection molding process also enables particularly complex and material-efficient structures. In the BMW Group model, this innovative component concept will cut weight by 40 percent compared to conventional steel designs of the component while creating important space for cable ducts and sensors.

The production of the carbon fiber profiles themselves is also particularly geared to material and process efficiency in large-scale production. The profiles consist of several smaller fiber strands, the so-called rods, and are manufactured using the modern continuous pultrusion process. During product and process development it was one key objective to ensure that material loss during production is almost completely avoided.

"At SGL Carbon, we have been working on the development of thermoplastic carbon fiber profiles for use in injection molding for some time already. This development work is now beginning to pay off. Due to the many advantages and competitive costs, we see a great potential for the technology to be used in other automotive projects too," explains Sebastian Grasser, Head of the Automotive Segment in the Business Unit Composites - Fibers & Materials at SGL Carbon.

"Innovative lightweight construction with hybrid designs has developed into a strategically conclusive concept for Koller Group's OEM customers," confirms Max Koller, CEO of Koller Group. "SGL Carbon's high level of material expertise, combined with the process know-how of KOLLER Kunststofftechnik and KOLLER Formenbau, create the basis for a promising future in innovative lightweight construction technologies. With this order, the BMW Group has confirmed its confidence in the successful cooperation between SGL and Koller; we are particularly pleased about this", said Max Koller.
 
The Koller Group is a globally operating technology company with plants in Europe and China, as well as NAFTA. The Koller Group develops and manufactures lightweight construction, tools and serial components, primarily for the automotive industry.

At first glance, rowing boats, the Airbus 380, safety equipment and stadium roofing have very little on common. They receive their specific properties as a result of the use of special fibers, among other things: aramid fibers and carbon fibers are processed into special yarns that are frequently deployed as compound materials. These fibers are growing in demand as the world seeks to reduce its reliance on fossil fuels; new solutions are required to reduce weight and replace heavy metallic parts.

Aramid fibers are produced in a highly-chemical process that is extremely aggressive; the acrylic precursor used to manufacture carbon fibers is a different process, but again no less difficult. In these sophisticated processes, the gear metering pumps are not only responsible for the high-precision control of the melt transport; durability, resistance within aggressive environments and cost efficiency also play decisive roles.

Special materials for special tasks
The process, the expected pump lifespan and the maintenance frequency are the decisive factors for choosing the materials from which the pumps and their components are manufactured. For optimum results, Oerlikon Barmag offers solutions that intelligently combine the various materials and the latest technologies. Whether in the case of surfaces with ceramic coatings, gears and shafts featuring DLC coatings, pumps made from cobalt alloys (StelliteTM) or robust and durable Oerlikon Barmag hybrid constructions comprising zirconium oxide ceramic and duplex stainless steel – the high-precision ZP- and GM-series pumps are design-optimized depending on the intended use. Various seal systems and customized drive concepts round off the pump program.